Petroleum Development Oman (PDO) said it has signed deals worth a combined $253.1 million with companies that will help localise the sourcing of oil and gas equipment.
The state’s major exploration and production company signed deals with Al Jizzi Transformers and Switchgears for the supply of well head transformers and with Voltamp Transformers Oman for the supply of power transformers, PDO said in a statement. The companies are located in Oman’s Ma’abella and Rusayl respectively.
The local manufacturing and supply of transformers and valves will be used in PDO’s operations and beyond.
“We are working hard with our partners to ensure that Oman builds its capacity and capability to competitively and professionally service both the nation’s oil and gas industry but also that beyond our borders,” said PDO managing director Raoul Restucci.
“In-country value not only shortens our supply lines and reduces our delivery times and transport costs, but also provides more vocational training and employment opportunities for Omanis while boosting the Sultanate’s economy.”
PDO also struck deals with Muscat-based Techno Fit Trading, Wuzhou Valve Company for the manufacture of ball valves, and with Indian firm Gene-tech Controls for the manufacture of mono-flange valves. After the first three years of these deals, both of the foreign companies have agreed to establish production facilities in the Sultanate to make the key components, PDO said.
The product range covers thousands of valve items from half-inch to 24-inch in size in various material grades, covering the majority of PDO operations, as well as potentially the wider petro-chemical industry in Oman and beyond.
So far, the company has localised the supply and manufacture of goods and services in a number of key areas, such as scaffolding, carbon steel pipes, well engineering equipment and the provision of polymer for enhanced oil recovery.
Approximately 41 per cent of PDO’s overall contracts are now placed with local businesses, and as much as 53 per cent of its well engineering contracts are awarded to Local Community Contractors, amongst the highest in the region, it said.